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Zip Code 63116 in St. Louis: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 63116, located in St. Louis, Missouri, has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown resilience in its housing market, with notable trends in both ownership and rental sectors. The homeownership rate in zip code 63116 has seen a gradual decline from 2013 to 2020, followed by a slight recovery. In 2013, the ownership rate was 58%, which decreased to 53% by 2020. However, there was a modest increase to 55% by 2022. This trend coincides with changes in average home prices. The average home price in 2013 was $97,343, which dropped to its lowest point of $93,982 in 2014. From there, a steady increase began, with prices reaching $163,392 by 2022, representing a substantial 73.9% increase over eight years.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. This coincided with the initial decrease in homeownership, possibly due to other economic factors outweighing the benefits of low rates. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 54-56%. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) may have contributed to the slight increase in homeownership observed in 2022.
Renter percentages in zip code 63116 have generally mirrored the inverse of homeownership trends, increasing from 42% in 2013 to 47% in 2020, before slightly decreasing to 45% in 2022. Average rent prices have shown a consistent upward trend, rising from $757 in 2013 to $901 in 2022, a 19% increase. This rise in rent prices occurred despite fluctuations in the area's population, which peaked at 45,734 in 2017 and decreased to 42,304 by 2022. The consistent increase in rent prices, even with a declining population, suggests a strong demand for rental properties in this zip code.
In 2023 and 2024, the housing market in zip code 63116 continued its upward trajectory. The average home price reached $169,665 in 2023 and further increased to $175,148 in 2024, representing a 3.8% and 3.2% year-over-year growth respectively. This growth occurred despite significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating a robust housing market that has remained resilient in the face of less favorable borrowing conditions.
Looking ahead, based on the observed trends and current market conditions, we can anticipate continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to maintain a steady increase, potentially reaching around $200,000 by 2029. Average rent prices are expected to follow a similar upward trend, possibly surpassing $1,000 per month within the same timeframe. However, the rate of increase may moderate compared to recent years, influenced by factors such as interest rates and overall economic conditions.
In summary, zip code 63116 has demonstrated a dynamic housing market characterized by a slight shift from homeownership to renting, substantial increases in average home prices, and steady growth in average rent prices. The area has shown resilience to changing economic conditions, with recent years indicating a potential stabilization in homeownership rates and continued appreciation in property values. These trends suggest a balanced and potentially attractive market for both homeowners and investors in the coming years.
